Bounce Back Loan Scheme

This blog is written with credit to this Accountancy Daily Article.

A freedom of information request to the Insolvency Service discloses that 377 business directors were banned for abusing the bounce-back loan. Four directors have appeared in court and face charges, and a total of 917 directors are disqualified in 2022.

The bounce-back loan scheme was abused for providing personal expenses rather than business support for companies impacted by the pandemic. Bounce back fraud was such a common issue during and following the pandemic, with some companies claiming multiple loans. Some businesses applied for these, knowing they weren’t eligible for one or they didn’t fully understand the requirements.

HUSA Accountants want to ensure our clients understand the conditions of loans and what they can or can’t claim or pay back.

HUSA Accountants stay up-to-date with all the latest news and during the covid pandemic, we were able to advise clients on the bounce back loans. With the news of many businesses committing fraud, our team at HUSA want to ensure our clients know everything they should about loans and that they know the consequences of fraud.

An estimated total of bank loan fraud was valued at 3.3bn at the end of 2022. Compensation orders recovered thousands of pounds against disqualified directors, relating to these Insolvency Service investigations.

48 ongoing investigations continue into the abuse of the Covid bounce-back loan. A handful of cases were decided on but no further outcome came from this. Not all cases involved in this fraud were directors, however.

Don’t hesitate to get advice

Get advice from your accountant on the best moves for your business. If you need financial advice or were impacted by the pandemic, speak to a professional today. Read more on the gov website about The Insolvency Service here.